Indiana Sales Tax Guide (2026 Update)

Key Takeaways

• Indiana imposes a statewide 7% sales tax on most tangible personal property and certain digital goods. There are no local sales tax rates layered on top.
• As of January 1, 2024, Indiana eliminated the 200-transaction threshold for economic nexus. Remote sellers now establish nexus only when they exceed $100,000 in gross Indiana sales.
• Marketplace facilitators must collect and remit sales tax on behalf of third-party sellers if they meet the economic nexus threshold. Sellers exclude facilitated sales when determining their own nexus.
• All Indiana sales tax returns must be filed electronically through INTIME (Indiana Taxpayer Information Management Engine).
• Registered Retail Merchant Certificates (RRMCs) do not require renewal as long as the business remains compliant with filing and payment requirements.

Do You Need to Collect and Remit Sales Tax in Indiana? 

If your business operates in Indiana—or sells enough into the state—you may be required to collect and remit Indiana sales tax.

Indiana imposes a 7% state sales tax on retail transactions involving tangible personal property (TPP). Tangible personal property includes any physical item that can be seen, weighed, measured, felt, or touched.

That said, Indiana’s sales tax base includes several important exemptions:

• Most standalone services are not taxable
• Unprepared grocery food is exempt
• Purchases made by nonprofit organizations are exempt with a valid exemption certificate
• Many types of medical equipment and supplies are non-taxable

As always, classification matters. A transaction that looks like a service may still be taxable if tangible personal property is transferred as part of the sale. Likewise, digital goods are taxable when delivered electronically if the purchaser receives a permanent right to use them.

Do You Have Sales Tax Nexus in Indiana? 

Indiana uses two primary standards to determine whether a business has sales tax nexus:

1. Physical nexus
2. Economic nexus

If either applies, registration and collection are required.

Physical Sales Tax Nexus in Indiana 

You likely have physical nexus if you:

• Operate a storefront or office in Indiana
• Maintain inventory in the state (including third-party warehouses)
• Have employees, agents, or independent contractors working in Indiana
• Perform installation, construction, or repair services in Indiana
• Own or lease real or personal property in the state

Any physical presence generally creates sales tax obligations.

Economic Sales Tax Nexus in Indiana 

A remote seller with no physical presence in Indiana establishes economic nexus if:

• The seller has more than $100,000 in gross revenue from Indiana sales in the current or prior calendar year

Prior to 2024, Indiana also imposed a 200-transaction threshold for remote sellers. That requirement was removed as of January 1, 2024. The $100,000 gross revenue threshold is now the sole economic nexus trigger.

A few important notes on economic nexus:

• Gross revenue includes both taxable and exempt sales
• Nexus is evaluated on a current-year or prior-year lookback

Nexus determination can quickly become complicated—especially when marketplace sales, exempt sales, and prior-year lookback periods are involved. If you want clarity without paying big-firm hourly rates, that’s exactly what we do. Contact us for a nexus review and get straight answers.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Indiana?

Yes.

Under Indiana law, marketplace facilitators must register and collect sales tax on behalf of third-party sellers for Indiana transactions if it exceeds the $100,000 economic nexus threshold.

Because the facilitator collects and remits on behalf of sellers, third-party sellers should exclude marketplace-facilitated Indiana sales when determining their own economic nexus.

In some cases, Indiana also requires marketplace facilitators to collect additional taxes such as County Innkeepers Tax (CIT) and Food and Beverage (FAB) taxes.

Common marketplace facilitators include:

• Amazon    
• eBay  
• Shopify Shop App
• Etsy 
• Walmart (Online)

The key test of a marketplace facilitator is whether the platform processes payments and facilitates the sale between the seller and the customer.

Filing Sales Tax in Indiana

There are several key steps new businesses must complete before they can begin filing Indiana sales tax returns:

• Register your business with the Indiana Department of Revenue
• Receive your Registered Retail Merchant Certificate (RRMC) and assigned filing frequency
• Begin collecting Indiana sales tax from customers at the appropriate rate
• File and remit sales tax electronically through INTIME

We break down each of these steps in more detail below so you know exactly what to expect at every stage of the process.

Registration Options

Indiana offers several registration options:

Once registered, you will receive a Registered Retail Merchant Certificate (RRMC) and an assigned filing frequency (annual, monthly, or early monthly). This RRMC does not require renewal, but it remains valid only as long as the business stays compliant with filing and payment obligations.

Filing Through INTIME

After you have collected sales tax and are ready to file, Indiana requires electronic filing only through INTIME—the Indiana Taxpayer Information Management Engine. Paper sales tax returns are no longer accepted.

Through INTIME, businesses can:

• File sales tax returns
• Make payments
• Manage correspondence
• View account balances
• Authorize third-party access

When Are Sales Tax Returns Due in Indiana?

Indiana assigns one of three filing frequencies at registration:

1. Annual filers – for businesses with minimal liability
2. Monthly filers – the standard frequency for most retailers
3. Early monthly (accelerated) filers – for businesses with high sales tax liabilities

The Department of Revenue may adjust a business’s filing frequency based on tax liability. Taxpayers are notified of any changes before the beginning of the next tax year.

See the graphic below for a breakdown of Indiana’s filing frequencies and due dates.

Note: Even if you have no tax revenue or activity for your filing period, you must file a $0 return. Late filed returns, regardless of there being any tax liability, are subject to penalties.